Trade deficit increases by 8.42 percent in 2015-16: Minister informs National Assembly

Pakistan recorded trade deficit of $23.96 billion in the financial year 2015-16 as compared to $22.1 billion during the last financial year, reflecting an increase of 8.42 percent. Minister for Commerce Khurram Dastgir Khan informed this to the National Assembly on Monday during the Question Hour. He said that Pakistan''s imports have grown by nearly 6 percent mainly owing to the demand of many imported items is inelastic like petroleum products, food items and machinery.
He explained that due to increase in development activities in the country, especially China-Pakistan Economic Corridor, the import of machinery and equipment has increased while because of shortfall in cotton production in the country, a large quantity of raw cotton is also being imported to meet the demand of the local textile industry. The minister said the trade balance has also been affected due to decline in Pakistan''s exports owing to economic slowdown in the global market, global commodity crisis, currency devaluation by competitors and Pakistan''s low position in global competitiveness index.
He said in 2015-16, the country''s overall trade was $62.324 billion out of which Pakistan''s exports were $21.98 billion and imports were $40.34 billion. The United States of America is the largest export destination for Pakistani goods, he said, adding that total exports for the year 2015-16 were $3.5 billion whereas bilateral trade for the same period was $5.3 billion, he added.
He said on June 25, 2003, Pakistan and USA had signed Trade and Investment Framework Agreement (TIFA), under which both countries meet and discusses issues of mutual interest with objective of improving cooperation and enhancing opportunities for trade and investment.
The Minister said that Pakistan enjoys multidimensional relationship with the United States, therefore, "we are seeking help of the US in promotion of our agriculture sector, especially the transfer of technology." He said the government is also seeking help of the US in seed technology, especially cotton seed because this is one of Pakistan''s immediate issues in the agriculture sector. The cotton crop plays an important role not only in domestic economy but also in exports, he said.
To another question, the minister said that Pakistan being member of World Trade Organisation has extended the Most Favoured Nation status to all the WTO countries, except India and Israel. The extension of the MFN is a reciprocal measure, therefore, the other 163 WTO members have extended MFN status to Pakistan, he said, adding that in the case of MFN treatment Pakistan enjoys non-discriminatory market access to these countries, he added.
Advisor to the Prime Minister on Foreign Affairs Sartaj Aziz informed the National Assembly that a total of 444 Pakistani officials and employees are serving in nine countries including the United States, UK and some Middle East countries, while the total number of employees working in 122 missions abroad is 1,962 and the total expenditure incurred on them during the last four years is Rs 11.725 billion.
The strength of these missions was the approved strength as of October 2016, he said, adding the actual strength may be lower in some cases. The advisor said that all postings are made on merit as there is no quota system in the initial appointment and the posting tenure is three years. He also informed the house that Pakistani mission in Saudi Arabia provides legal aid to the Pakistanis detained over there on different charges. However, the decision on their release or punishment has to be taken by the courts under the Saudi laws.